| Summary: | To thrive, developing countries depend on high levels of protection being given to key industries such as manufacturing; specifically the automotive and textile industries. South Africa, as a developing country and especially under the emergence of globalisation, has followed suit in terms of developing policies and structures to protect certain critical industries. During an era (1980 to 1989) of high political instability, South Africa experienced isolation from the rest of the world, which resulted in declines in industrial revenues as well as the country’s automotive industry undergoing a stage of perilous stagnation. It was through a protection regime that the automotive industry realised growth, a regime which started slowly in 1989 and accelerated in 1995 with the introduction of the Motor Industry Development Programme (MIDP) (Black, 2001). Through this regime the South African government sought to integrate the South African automotive industry into the global market by improving the competitiveness of this industry (The DTI, 2010). This led to the automotive industry becoming one of the most successful export sectors in South African manufacturing and a large net consumer of foreign currency, totalling R20 billion and R10 billion in imports and exports respectively by 1998 (Damoense and Simon, 2004). Reviews of the government legislation called the MIDP were held in year 1999 and 2002 and in 2008, a successor to the MIDP was named, the Automotive Production Development Programme (APDP) and is set to commence in year 2013 until 2020. Unlike its predecessor, the APDP policy promises to bring greater and more inclusive benefits to the automotive industry as a whole, provided organisations have prepared well to receive it. This study investigated whether organisations have prepared for the upcoming 2013 - 2020 APDP, with specific reference to capital investment in equipment. It determined whether automotive organisations have spent and are going to spend resources in securing equipment and technology in preparation for the introduction of the APDP.
|
|---|
